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Market Comment - January 2013

January 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

We mentioned previously that politics was the dog that didn’t bark in 2012. This time last year we were all obsessed with political risk, and with good reason. Yet this remains the most likely tail risk for smaller companies in 2013; a small risk, but one which, if it occurs could be overwhelming, and send us back into 2008-style turmoil.The Daily Telegraph posed the question “was 2012 the year when the democratic world lost its grip on reality?  Must we assume now that no party that speaks the truth about the economic future has a chance of winning power in a national election?â€.Of the three great pillars of the world economy, Europe as a geographic entity is the largest economic area. Within that bloc is a phala ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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